USS wants governance code extended
The Universities Superannuation Scheme (USS) has called for a newly-launched code on investor engagement to be extended to asset classes other than equities.

One of the most innovative capital-raising exercises ever undertaken by a European bank might never have happened, according to one of its senior creators.

The Greek fallout has been felt across Europe, dominating investors’ minds, writes Dean Tenerelli.

A “dramatic liquidity imbalance” in the US equity markets led to a severe fall in the value of hundreds of securities, with the S&P 500 Index losing 7 per cent at one stage, senior officials have told a US Securities & Exchange Commission (SEC) inquest into the May 6 market rout.

Activity picks up but investors watch Obama, says Phillip Davidson.

Despite showing a greater appetite for external asset managers, institutional investors in Asia are looking to expand their in-house investment management capabilities, according to recent research by Greenwich Associates.

Poorer, developing nations value economic orthodoxy more than richer countries, writes Jerome Booth.

There is no conflict between incorporating environmental, social and governance (ESG) principles into investment decision-making and generating financial returns, according to Andrew Marino, a principal on the US buyout industrial team at the Carlyle Group, a global private equity firm.

Asia’s resilience is marked by a flight to private equity and IPOs, says Khim Tan.

Trust is a huge and fundamental issue for investors and asset managers must become more client-centric if they want to survive in an uncertain, post-crisis market environment, delegates attending the recent Fund Forum conference in Monaco were warned.

How can asset managers regain trust after selling investors products that left them exposed during the crisis? asks Henry Smith.

As long as it is actively managed and well diversified, a sovereign portfolio is less risky than you think, writes Arif Husain.

Despite constant criticism in cases of recent market volatility, industry insiders are quietly supportive of HFT firms and their improvements in market efficiency.

A realignment of sovereign and corporate debt has created several bond market opportunities for companies and investors in central and eastern Europe.

As the old guard of quantitative investing retire into the periphery, performance-focused pragmatists are coming to the fore, writes Yuri Bender.

Liquidity risk is one of the most pressing business concerns facing financial institutions, and there is much for firms to consider.

Hermes’ CEO Rupert Clarke explains how the firm’s long-standing commitment to ESG values and transparency will help in its mission to attract a wealth of third-party business over the next five years.

Holland’s PFZW scheme has made an astonishing recovery from the financial crisis, but it still faces an uphill struggle as it moves towards offering indexation.

Tempted by more opportunites and better flexibility, European and UK pension funds are turning to global equity mandates and away from domestic holdings.

While pension funds might not feel the long-term effects of the BP crisis, those holding such equities should re-examine their investment strategies to avoid any short-term adversity.

Pension funds’ use of volatility trading has receded since the collapse of Lehman Brothers, but approaches such as risk-weighted index strategies should see the market pick up.

While there are many reasons for optimism as markets begin to recover, pension funds must not forget the risks that thrust them into crisis, says Gill Wadsworth.

After a period of dipping their toes into the alternatives water, many pension funds have gained confidence and are moving away from the funds-of-funds approach towards single strategy.

The shape of Greece’s recovery from its recent ratings downgrade could take many forms, but the situation is currently causing concern among its European neighbours who fear the extent to which they may get caught up in the wash of the nation’s flailing economy.

As an increasing number of institutions add infrastructure to their portfolios, Martin Fagan looks at the implications of having different fee structures.

Political instability in former Soviet states is enough to put many investors off. But the region is home to an abundance of minerals and could play a key part in institutional portfolio diversification.

Often conflated with short selling, many traders believe securities lending is essential to ensuring market liquidity, and are working to change its poor reputation with the public and reaffirm its place as a crucial trading tool.

Concerns over hedge fund counterparty risk since the peak of the market turmoil have driven swathes of prime brokerage business towards European banks, while investors are changing the way they use their services.

An increasing focus on risk management and transparency has led to an interest in institutions outsourcing their client reporting processes, which itself presents new challenges to trustees and their fund managers.